We've been extensively covering how the ongoing U.S. tariff turmoil could affect the gaming sector, touching on everything from consoles to accessories and software. While many are understandably worried about the repercussions for both consumers and businesses, Take-Two CEO Strauss Zelnick appeared notably calm when discussing potential tariffs during today's investor Q&A session.
Near the end of the call, Zelnick was questioned about possible console price hikes and their broader effect on the gaming ecosystem. This line of inquiry referenced the recent Xbox Series price increase and the anticipated PlayStation 5 price adjustment that may follow.
Zelnick expressed that, although the tariff situation is complex and unpredictable, Take-Two's financial projections are firmly established for the near future:
"Our guidance covers the next ten months—the remaining portion of the fiscal year—and it's challenging to forecast where tariffs will settle given how volatile they have been. We're reasonably confident that our outlook won't be significantly impacted unless tariffs shift dramatically from current expectations. Moreover, there's already a sizable installed base for all our target platforms, with the exception of the pre-launch Nintendo Switch 2. Based on our analysis, we believe we're well-positioned to withstand any potential changes."
Zelnick's confidence is well-founded. As he highlights, most of Take-Two's upcoming releases are designed for platforms that consumers already own. Fluctuations in sales of the Xbox Series, PS5, or even the Nintendo Switch 2 aren't expected to have a major impact. Additionally, a large portion of the company's revenue stems from digital purchases in live-service titles like GTA V and Red Dead Redemption 2, as well as its mobile division—areas untouched by tariffs.
That said, Zelnick acknowledges that the situation remains fluid. We've consulted with analysts multiple times in recent months regarding tariffs, and they consistently emphasize the unstable and evolving nature of the landscape—something even the Take-Two CEO is accounting for.
Ahead of the investor call, we spoke directly with Zelnick about the company's quarterly performance, which included updates on GTA 6's development timeline and his perspective on the game's recent delay into next year. We also reported on Zelnick's Q&A remarks concerning the Nintendo Switch 2 and why he remains optimistic about its upcoming launch.
